Starz Won't Renew Netflix Deal When It Expires In February

Come March, Netflix’s array of video streaming options could be considerably thinned. Starz announced it’s stopped negotiating an extension with Netflix and all its movies and TV shows will vanish from the service when the current deal expires February 28.

All Things Digital relays a statement from Netflix that downplays the loss of Starz stuff, insinuating the deal has outlived its usefulness:

While Starz was a huge part of viewing on Netflix several years ago because it was some of the only mainstream content Netflix offered, over the years Netflix has spent more and more licensing great TV shows from all four broadcast networks and many cable networks, and we have licensed 1st run movies from Relativity, MGM, Paramount, Lionsgate and others. Because we’ve licensed so much other great content, Starz content is now down to about 8% of domestic Netflix subscribers’ viewing. As we add even more content in Q4, we expect Starz content to naturally drift down to 5-6% of domestic viewing in Q1. We are confident we can take the money we had earmarked for Starz renewal next year, and spend it with other content providers to maintain or even improve the Netflix experience.

Netflix also thanked Starz for giving it enough notice of its departure to scrounge for new deals to fill the gaps.